Amid overall pressure in China's smartphone market, Apple emerged as the standout winner in the first quarter with a 20% shipment growth rate.
Data from market research firm Counterpoint Research shows that Apple's iPhone shipments in China surged 20% year-on-year in the first quarter, leading all major brands in growth rate. During the same period, skyrocketing memory chip prices pushed up overall industry costs, combined with supply chain disruptions, causing total smartphone shipments in China to decline and impacting most domestic brands.
Apple ranked second with a 19% market share, trailing only Huawei, which holds the top spot with a 20% market share. Ivan Lam, Senior Analyst at Counterpoint Research, stated that while competitors universally raised prices, Apple's value proposition became increasingly prominent.
Ivan Lam expects Apple to maintain relatively stable performance in the second quarter, potentially benefiting further as domestic brands continue to raise prices.
According to Counterpoint, storage prices are set to rise significantly in the second half of 2025, creating substantial cost pressure for the global smartphone industry, particularly affecting the low-end segment. Smartphone sales priced below $150 in the second half of 2025 declined 11% year-on-year.
<h2>Huawei Defies the Trend with Dual-Track Strategy</h2>
In the first quarter, rising memory chip costs forced several domestic manufacturers to increase entry-level model prices to protect profit margins. Ivan Lam pointed out that in this context, Apple's relative value proposition became even more pronounced—when competing products saw price hikes, Chinese consumers' perception of Apple products having at least a three-year lifespan became a key factor supporting their purchasing decisions.
Huawei also avoided being dragged down by the overall market downturn, recording a slight 2% shipment increase in Q1 to maintain its top industry position with a 20% market share. Ivan Lam noted that Huawei's growth stemmed from comprehensive efforts across both high-end and mid-to-low-end product lines, with the Enjoy 90 series performing exceptionally well in the budget segment, effectively driving overall shipment volume.
<h2>Domestic Brands Face Pressure Amid Intensifying Differentiation</h2>
Most domestic brands experienced significant shipment pressure in the first quarter. Xiaomi saw the most notable decline among major manufacturers, dropping to sixth place in the industry. Ivan Lam attributed this primarily to the high base effect—the previous year, Xiaomi benefited from aggressive pricing strategies and government subsidies, resulting in substantially higher shipments and setting a high comparative baseline. OPPO and Honor also recorded slight shipment declines, while vivo achieved modest positive growth thanks to strong sales during the Lunar New Year holiday.
Looking ahead to the second quarter, Ivan Lam anticipates greater industry pressure, with domestic brands' plans to further raise prices likely to create additional market headwinds. However, he believes Apple and Huawei are poised to perform relatively better amidst the overall adverse conditions. &#34;Huawei is expected to achieve further shipment growth driven by sustained demand for low-end devices,&#34; he said.

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Apple's iPhone shipments in China surged 20% year-on-year in the first quarter, posting the highest growth rate among major brands. Huawei also bucked the overall market downturn, with a slight 2% shipment increase in Q1, securing the top industry position with a 20% market share. Soaring memory chip prices have driven up overall industry costs, compounded by supply chain disruptions, putting pressure on China's smartphone market

- In the face of challenges in China's smartphone market, Apple achieved a 20% increase in iPhone shipments in Q1, making it a standout performer among major manufacturers.  
- Despite rising memory chip prices and overall market decline affecting local brands, Huawei maintained its top position with a 20% market share, experiencing a slight growth of 2%.  
- Analysts expect Apple and Huawei to continue performing well, while domestic brands may struggle as they consider further price hikes amidst an increasingly competitive environment.

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iPhone Shipments in China Surge 20% in Q1; Memory Price Hikes Raise Entry Barriers for Domestic Phones, Apple and Huawei Defy the Trend